Research Article

Is the Feldstein-Horioka Puzzle Valid in OECD Countries?

Volume: 10 Number: 1 February 28, 2025
EN TR

Is the Feldstein-Horioka Puzzle Valid in OECD Countries?

Abstract

Investments and savings are regarded as critical components in the evolution of economic performance. Both are employed to stimulate economic development and growth. Based on international capital movements, the Feldstein-Horioka puzzle investigated the relationship between savings and investment. The validity of the Feldstein-Horioka puzzle was investigated in this investigation for the years 1990-2021, covering OECD countries.

Keywords

Feldstein-Horioka Puzzle, Saving, Investment, Westerlund (2007) Cointegration Test

Ethical Statement

This study, which does not require ethics committee approval and/or legal/special permission, complies with research and publication ethics.

References

  1. Akadiri, S. S., Apinran, M. O., & Usman, N. (2020). New insight into Feldstein and Horioka paradox: analyzing the mediating roles of globalization, urbanization, and foreign direct investment. Journal of Public Affairs, 22(2), 1–13. https://doi.org/10.1002/pa.2472
  2. Akadiri, S. Saint, Ahmed, I. I., Usman, O., & Seraj, M. (2016). The Feldstein-Horioka paradox, a case study of Turkey. Asian Economic and Financial Review, 6(12), 744–749. https://doi.org/10.18488/journal.aefr/2016.6.12/102.12.744.749.
  3. Akkoyunlu, S. (2020). Revisiting the Feldstein-Horioka Puzzle for Turkey. Journal of Applied Economics, 23(1), 129–148. https://doi.org/10.1080/15140326.2020.1711592.
  4. Balavac, M. (2011). The Role of Remittences in the Explanation of Feldstein-Horioka Paradox: Evidence from Transition Economies. Economic Research-Ekonomska Istraživanja, 24(4), 91–106. https://doi.org/10.1080/1331677X.2011.11517483.
  5. Baltagi, B. H. (2005). Econometric Analysis of Panel Data. In John Wiley & Sons.
  6. Caglar, A. E., & Yavuz, E. (2017). Türkiye’de Yatırım-Tasarruf İlişkisinin Feldstein-Horioka Paradoksu Çerçevesinde Analizi: Farklı Tipte Eşbütünleşme Yaklaşımları. Pamukkale Üniversitesi Sosyal Bilimler Ensti Tüsü Dergisi Pamukkale, 31, 143–152.
  7. Çağlayan Akay, E., & Türküz, E. (2016). Gelişmiş ve Gelişmekte Olan Ülkelerde Feldstein-Horioka Bulmacasının Analizi. EconWorld2016@ ImperialCollege Proceedings, 1–18.
  8. Celik, A., Kostekci, A., & Alola, A. A. (2024). Carbon neutrality implication of material productivity, total factor productivity and renewable energy uptake in the Nordics. Ecological Indicators, 160, 111813.
  9. Corbin, A. (2001). Country Specific Effect in the Feldstein-Horioka Paradox: a Panel Data Analysis. Economics Letters, 72(3), 297–302. https://doi.org/10.1016/S0165-1765(01)00447-5
  10. Duran, H. E. ., & Ferreira-Loper, A. (2023). The Revival of the Feldstein-Horioka Puzzle and Moderation of Capital Flows After the Global Financial Crisis (2008/09). Research in International Business and Finance, 351.
APA
Pehlivan, C., & Korkmaz, Ö. (2025). Is the Feldstein-Horioka Puzzle Valid in OECD Countries? Bulletin of Economic Theory and Analysis, 10(1), 317-337. https://doi.org/10.25229/beta.1594118
AMA
1.Pehlivan C, Korkmaz Ö. Is the Feldstein-Horioka Puzzle Valid in OECD Countries? Beta. 2025;10(1):317-337. doi:10.25229/beta.1594118
Chicago
Pehlivan, Ceren, and Özge Korkmaz. 2025. “Is the Feldstein-Horioka Puzzle Valid in OECD Countries?”. Bulletin of Economic Theory and Analysis 10 (1): 317-37. https://doi.org/10.25229/beta.1594118.
EndNote
Pehlivan C, Korkmaz Ö (February 1, 2025) Is the Feldstein-Horioka Puzzle Valid in OECD Countries? Bulletin of Economic Theory and Analysis 10 1 317–337.
IEEE
[1]C. Pehlivan and Ö. Korkmaz, “Is the Feldstein-Horioka Puzzle Valid in OECD Countries?”, Beta, vol. 10, no. 1, pp. 317–337, Feb. 2025, doi: 10.25229/beta.1594118.
ISNAD
Pehlivan, Ceren - Korkmaz, Özge. “Is the Feldstein-Horioka Puzzle Valid in OECD Countries?”. Bulletin of Economic Theory and Analysis 10/1 (February 1, 2025): 317-337. https://doi.org/10.25229/beta.1594118.
JAMA
1.Pehlivan C, Korkmaz Ö. Is the Feldstein-Horioka Puzzle Valid in OECD Countries? Beta. 2025;10:317–337.
MLA
Pehlivan, Ceren, and Özge Korkmaz. “Is the Feldstein-Horioka Puzzle Valid in OECD Countries?”. Bulletin of Economic Theory and Analysis, vol. 10, no. 1, Feb. 2025, pp. 317-3, doi:10.25229/beta.1594118.
Vancouver
1.Ceren Pehlivan, Özge Korkmaz. Is the Feldstein-Horioka Puzzle Valid in OECD Countries? Beta. 2025 Feb. 1;10(1):317-3. doi:10.25229/beta.1594118